LANSING – The Strategic Fund approved five Michigan Business Development Program incentives on Tuesday, with expansions for automotive or solar companies coming to Albion Township, Watertown Township, Troy, Benzonia and China townships, and Saginaw Township.
Suniva, Incorporated, which manufactures high-efficiency solar cells and high-power solar modules, will create a new manufacturing facility in Saginaw Township, investing up to $12.5 million and creating 350 jobs. The company was awarded a $2.5 million performance-based grant as a result. Michigan was chosen over competing sites in Mississippi and Georgia (the company is headquartered near Atlanta).
The Michigan Energy Innovation Business Council, an association of Michigan advanced energy companies, applauded the decision by Suniva.
“Michigan EIBC is excited to welcome Suniva to Michigan,” group President Dan Scripps said in a statement after the Michigan Economic Development Corporation issued a release on the expansion, and others. “Suniva’s selection of Saginaw for their second facility shows momentum behind Michigan’s growth as a global leader in advanced energy.”
In Kent County, Watertown Township can expect to see a new manufacturing facility for Challenge Manufacturing Company, a manufacturer of engineered modular assemblies and metal formed products for the automotive industry. The new facility expects to generate a total capital investment of $65.5 million and create 420 jobs, resulting in a $2.3 million grant. Michigan was chosen over competing sites in Tennessee and Missouri.
The Strategic Fund also approved a brownfield work plan submitted by the Oakland County Brownfield Redevelopment Authority for school and local capture valued more than $2.9 million on behalf of Challenge Manufacturing’s new assembly plant in Pontiac. The MEDC said eligible activities that will be undertaken to alleviate brownfield conditions include site demolition to remove existing concrete and site preparation activities including land balancing and grading, geotechnical engineering, temporary erosion control and temporary facilities.
In Albion Township, Brembo North America, Incorporated, a subsidiary of a company that makes brake systems for automobiles, some 254 jobs can be expected from an investment of more than $78.4 million as the company purchases property and builds an industrial facility to produce brake rotor castings. Brembo received a $2 million grant as a result, as well as another $1.5 million in community development block grant funds for job training. The company also received an amendment to its existing MEGA tax credit to extend the length of the credit and to allow for the additional jobs.
In Troy, H.A. Automotive Systems, an automotive lighting components supplier headquartered in Shanghai, China, plans to establish a headquarters, manufacturing, and research and development facility expected to generate a total capital investment of $28.8 million. The project, which chose Michigan over competing sites in several southern states including Texas and Missouri, expects to create 368 new jobs, resulting in a $2.25 million grant.
Finally, Magna Exteriors and Interiors USA, Incorporated, won an increase to its grant from January 2014 for expansions in both China Township in St. Clair County and Benzonia Township in Benzie County. Originally, the company had received an $822,000 grant for projected expected to generate $3.6 million and creating 274 jobs, but the company has since created those positions and experienced additional growth, requiring an additional 169 employees. As a result, the grant was increased by $507,000 (for a total grant of more than $1.3 million).
“The reinvention of Michigan is working and making our state the comeback state. These projects will add to our growing momentum and economic growth,” Governor Rick Snyder said in a statement. “We’ve worked to better our state’s business climate and our efforts are bringing strong results. These new investments in our state will strengthen our communities, spur new commercial investment in our cities and fuel new opportunities for our talented workforce.”
COMMUNITY DEVELOPMENT GRANTS: Grand Traverse County was awarded $880,000 in grant funding to remediate blight of environmentally-contaminated properties for the Uptown Development TC, LLC Blight Elimination Project in Traverse City. The finished project will consist of multi-story condominium units as well as “live-work” mixed use units. The funds will include site demolition, lead and asbestos abatement, clearing and grubbing, excavation and removal of contaminated soils and placement of new engineered fill, the MEDC said.
MEGA AMENDMENTS: In June 2009, the Michigan Economic Growth Authority approved a Global Retention MEGA Tax credit for General Motors for the retention of up to 20,000 employees. Since then, the credit has been amended and currently allows for 33,000 retained employees. But the company has experienced continued growth and so the Strategic Fund approved an increase in the maximum allowance for retained jobs to 34,750.
YanFeng USA Automotive Trim Systems, Incorporated, an automotive plastics interior trim supplier with facilities Warren, Harrison Township and Riverside, Missouri, won an amendment to its 2010 MEGA tax credit to create 131 new jobs to now allow an additional 519 jobs (and add Warren as a location for eligible jobs). The company plans to expand its current manufacturing facility in Harrison Township. The tax credit was assigned for seven years.
Finally, in Detroit, the City of Detroit Brownfield Redevelopment Authority won an amendment to a 2011 Brownfield credit to move along the redevelopment of property on Woodward Avenue. The completed project will include a five-story medical office building with retail space on the first floor and a separate four-story mixed-use commercial building, as well as a parking ramp. The total capital investment is about $73 million and 30 full-time jobs related to the medical field are expected to be created, the MEDC said.
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